IDB to increase mortgage finance to low-income customers to EGP 1.5bn

Chairperson and Managing Director of the Industrial Development Bank (IDB), Maged Fahmy, and Chief Executive Director of the Social Housing and Mortgage Finance Fund (SHMFF), May Abdel Hamid, signed a cooperation protocol on Wednesday to increase the mortgage finance directed to low-income customers to EGP 1.5bn instead of EGP 1bn.

The financing is offered at 5% and 7% interest rates, as part of the Central Bank of Egypt (CBE)’s Mortgage Finance Initiative.

Fahmy said that the new cooperation protocol with the SHMFF comes as a continuation of the bank’s vital developmental role to support the state’s strategy and promote the national economy. 

Fahmy praised the successes achieved by the CBE’s initiatives to serve the different sectors of the country, find appropriate solutions to the housing problem, and contribute to the welfare, stability, and prosperity of Egyptian citizens. He stressed that the IDB is looking to further finance strategic projects in the sectors of infrastructure, health, environment, and education.

For his part, IDB’s Executive Vice Chairperson, Hamdy Azzam, praised the fruitful and constructive cooperation and successes achieved with the fund.

Azzam stressed that IDB places development projects at the top of its financing targets to meet the needs of all social and economic groups to achieve tangible economic growth with a sustainable impact.

He pointed out the success of the bank in launching the initiative to finance 10,000 factories nationwide in June 2019 and allocating EGP 10bn for this purpose, in order to contribute to the creation of 20,000 jobs.

He explained that the initiative has achieved its planned goals so far, where it attracted dealings to 183 customers with facilities estimated at EGP 2bn.

He added that the bank is ahead of time in modernizing the technological infrastructure, which will result in the provision of all electronic services during the first quarter of 2020, and is witnessing the deployment of 42 ATMs to cover the governorates of Egypt, and plans to expand the deployment of e-services to reach all its customers, and will launch the “Meeza” card next week.

In order to enhance the concept of financial inclusion, the bank is expanding its branch network and spreading it all over the country to reach different segments of society, provide the services and products of the bank easily and in line with the state policy. This will occur through opening six new branches in Minya, Ismailia, Beni Suef, Damietta, Suez, Sadat City, and New Cairo, as well as the development of existing branches.